According to a report from ATTOM, commercial foreclosures in the United States are still significantly higher than pre-pandemic levels. In September 2024, there were 695 commercial foreclosures reported by ATTOM, which is a slight decrease from the peak of 752 in May of that year. This recent surge could indicate renewed financial stress or changes in the dynamics of commercial real estate.
Looking at data from January 2014 to September 2024, it is clear that economic conditions and major events like COVID-19 have greatly influenced foreclosure numbers. The years leading up to the pandemic saw a gradual decline in monthly totals below 500 after consistently high numbers between October 2014 and December 2015.
During the height of the pandemic, foreclosures hit their lowest point with only144 reported in April 2020. However, as restrictions eased and businesses began reopening mid-2021 saw an increase once again. By June of that year there was a sharp resurgence with numbers steadily climbing until reaching their peak at752in May of
the following year.
In September of this same year (September
2023), California had more commercial foreclosures than any other state with264reported –a12%increase comparedtothemonthbeforeanda238%jumpcomparedtothesameperiodlastyear.NewYorkfollowedwith92foreclosuresthatmonth,a59%risefromthepreviousmonthand48%
higherthantheyearbefore.Floridawasnotfarbehindwith70commercialforeclosuresthatareup21%
fromAugustand49%higherthanlastyear.Texasrecorded45foreclosuresshowinga15%
increaseoverthemonthprior,butstilldown13%comparedtolastyear.Pennsylvaniareported32
commercialforeclosuresthatmonth–anastonishing129%M-O-Mincreasethatwas33%higherthan
theyearbefore.
In summary, commercial foreclosures in the United States have remained elevated and are still significantly higher than pre-pandemic levels. While there was a brief decline during the height of COVID-19, numbers have since risen again with California leading the nation in September 2023. This data reflects how economic conditions and major events can greatly impact foreclosure activity over time.
